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coconests_manager
Level 1

My tenant paid for repair cost and deducted from Rent, how do i record this in QB?

I am the landlord and collect monthly rent from my tenant. Last month there are repair cost and my tenant paid directly to the vendor. And deducted the cost from the rent. How should I record this in QB?

Monthly Rent: $4000

Repair Cost for Electrical work: $400

Rent received: $3600

 

 

Solved
Best answer December 05, 2023

Best Answers
Adrian_A
Moderator

My tenant paid for repair cost and deducted from Rent, how do i record this in QB?

Hi coconests_manager,

 

I'm here to help you record the rent fee and the repair cost.

 

We can create an invoice with a service item (for the repair cost). Then, add a credit memo to deduct the repair cost from your tenant's monthly rent. I'll guide you through the steps.

 

First, let's create an invoice for the rent fee:

 

  1. From the + New tab, select Invoice.
  2. Select the customer's name (tenant).
  3. Select the item for the rent.
  4. Enter $4,000 as the AMOUNT.
  5. Click Save and close.

 

Second, let's create a credit memo:

 

  1. Go to the + New tab.
  2. Select Credit memo.
  3. Select the tenant's name in the Customer field.
  4. Go to the PRODUCT/SERVICE field.
  5. Select + Add new.
  6. Choose Service.
  7. You can enter Repair as its Name.
  8. On the Income account drop-down, select an expense account.
  9. Click Save and close.
  10. On the AMOUNT drop-down, enter $400, then click Save and close.

 

Lastly, let's link the invoice and the credit memo. Here's how:

 

  1. Click Receive payment on the + New tab.
  2. Select the tenant's name.
  3. Under Outstanding Transactions, tick the created invoice.
  4. Tick the credit memo in the Credits section.
  5. Make sure the Amount received in the upper-left section is $3,600.
  6. Click Save and close.

 

Furthermore, you can pull up the Transaction List by Customer report to manage all credit memos and invoices. Here's how:

 

  1. On the Reports page, enter and select Transaction List by Customer.
  2. Click Customize.
  3. Go to the Filter drop-down.
  4. Tick Transaction Type.
  5. Select Credit MemoInvoice, and Payment.
  6. Click Run report.

 

Let me know whenever you have concerns about tracking transactions. All the best!

View solution in original post

2 Comments 2
Adrian_A
Moderator

My tenant paid for repair cost and deducted from Rent, how do i record this in QB?

Hi coconests_manager,

 

I'm here to help you record the rent fee and the repair cost.

 

We can create an invoice with a service item (for the repair cost). Then, add a credit memo to deduct the repair cost from your tenant's monthly rent. I'll guide you through the steps.

 

First, let's create an invoice for the rent fee:

 

  1. From the + New tab, select Invoice.
  2. Select the customer's name (tenant).
  3. Select the item for the rent.
  4. Enter $4,000 as the AMOUNT.
  5. Click Save and close.

 

Second, let's create a credit memo:

 

  1. Go to the + New tab.
  2. Select Credit memo.
  3. Select the tenant's name in the Customer field.
  4. Go to the PRODUCT/SERVICE field.
  5. Select + Add new.
  6. Choose Service.
  7. You can enter Repair as its Name.
  8. On the Income account drop-down, select an expense account.
  9. Click Save and close.
  10. On the AMOUNT drop-down, enter $400, then click Save and close.

 

Lastly, let's link the invoice and the credit memo. Here's how:

 

  1. Click Receive payment on the + New tab.
  2. Select the tenant's name.
  3. Under Outstanding Transactions, tick the created invoice.
  4. Tick the credit memo in the Credits section.
  5. Make sure the Amount received in the upper-left section is $3,600.
  6. Click Save and close.

 

Furthermore, you can pull up the Transaction List by Customer report to manage all credit memos and invoices. Here's how:

 

  1. On the Reports page, enter and select Transaction List by Customer.
  2. Click Customize.
  3. Go to the Filter drop-down.
  4. Tick Transaction Type.
  5. Select Credit MemoInvoice, and Payment.
  6. Click Run report.

 

Let me know whenever you have concerns about tracking transactions. All the best!

Rainflurry
Level 14

My tenant paid for repair cost and deducted from Rent, how do i record this in QB?

@coconests_manager 

 

Create a service product called "Credit for Electric Repair" or "Tenant Paid Repair Credit" or something similar and select the expense account you would use for any electrical repair under 'Income account'.  Then, just add the "Credit for Electric Repair" line item to your tenant's invoice for -$400.  That will reduce the amount due from your tenant to $3,600 and book the $400 electrical expense.  IMO, it's better to put it on the invoice as a separate line item (instead of a credit memo) so it's easier for everyone to see.  Just my $.02.

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